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Summary Descriptions of Oil Price Plans
Get A Fixed Price On A Specific Number Of Gallons Of Oil
Under this plan, you can get a fixed price for a specific number of gallons of oil. So if you typically use 1000 gallons a year, then perhaps you might choose to fix a price on 500 gallons and then purchase the remaining 500 gallons based on our competitive variable rate pricing. The advantage to this plan is that you don’t have to buy all your oil for the entire year at a fixed price – you can fix the price of some gallons and let the remaining gallons float. It lets you take the “middle road”. Also, once you consume the fixed rate gallons you have committed to, you will then be able to go back into the system and purchase additional fixed or capped rate gallons. This plan is also less expensive - the cost is $69 payable by credit or debit card.
This plan has a few important rules. First, whatever amount of oil you choose to fix a price for, you will be obligated to take delivery of at least that amount within the following 12 months. To help prevent “over ordering”, you will only be able to commit to purchase a maximum of 80% of your expected annual usage. So if we expect your annual usage to be 1000 gallons, then the most you can commit to under this plan is 800 gallons. Second, the first gallons we deliver to you after you enroll in the plan will be the fixed rate gallons. After you have fulfilled your fixed price gallon obligation, then any gallons we deliver to you will be priced at our competitive variable rate, unless you have chosen to enroll into a new fixed or capped rate price plan. Keep in mind that once you fix the price for these gallons, we will not be able to lower your price even if world prices fall. Finally, to keep matters simple, you have to purchase fixed price gallons in 100 gallon increments.
For your convenience we have estimated your annual usage and the range of gallons that you can purchase which you will see in step 2 of the enrollment process.
Get A Fixed Price On All Gallons Delivered To You For 12 Months
This plan will fix your price for all the oil we deliver to you during a 12 month period. So whether you use 800 gallons in a warm year or 1200 gallons in a cold year, you will be covered for all the oil we deliver to you during those 12 months. If you want to be sure that all oil delivered to you is at a fixed price - whether the year is much colder than normal or much warmer than normal - then this is the plan for you. Once you enroll in this plan, your oil price can’t rise. However, since we will have bought the oil for you, we will not be able to lower your price even if world prices fall. In order for us to offer this plan to you, we must insure ourselves against winters that are either colder or warmer than normal. Due to the cost of this weather protection, the cost of this plan is $99, payable by credit or debit card.
Get A Capped Rate On A Specific Number Of Gallons Of Oil
This plan will allow you to cap the price you pay for a specific number of gallons of oil. Under the cap program, you will never pay more than the cap price, but if our competitive variable rate price is lower than your cap price, you will get the lower price. For example, if you buy a cap at $5.80 a gallon for 500 gallons, then you will not pay more than $5.80 a gallon on those gallons. If, under this example, we deliver oil to you, and on that date our variable rate is only $5.05 a gallon, then you will only pay $5.05 a gallon for that delivery. The first gallons we deliver to you after you enroll in this plan will be the capped price gallons. After you have taken delivery of your capped price gallons, any gallons we deliver to you will be priced at the competitive variable rate, unless you have chosen to enroll into a new fixed or capped price plan.
Keep in mind that not all cap price plans are the same. In the past, other oil companies have offered cap price plans that were very ambiguous or had complicated formulas, so they did not lower their capped oil prices even when the overall oil market declined considerably. Our capped oil price plan is simple and transparent. You will always pay the lower price – either the cap rate or the variable rate. With our capped plan, you will benefit from the lower price on a penny-for-penny basis as our variable rate price decreases. The cost for this plan is currently $.50 per gallon, and therefore, your cost will vary depending on the number of gallons you wish to purchase under this plan.
Our Competitive Variable Rate
If you think oil prices are already high, and more likely to fall than to rise, then you may be better off with our competitive daily rate. Our variable rate increases and decreases with the world oil market. There is no cost for this program. If you want to be on our variable price, you do not need to do anything. You will automatically be placed in this program if you do not select a Guaranteed Price, and your automatic deliveries will continue.
Please Remember
If you enter into any kind of Guaranteed Price Plan, you will be under a binding agreement to take delivery of the oil as agreed. Under Connecticut law we are required to purchase oil supply contracts to back up all guaranteed oil price commitments we make to our customers. Therefore, we rely on you to hold up your end of the bargain and to take automatic delivery of the oil as agreed.